Expert advice: Are you buying the right property?
CohenHandler’s CEO Ben Handler says that as a buyer’s agent, there are three key elements he always looks for in an investment property before recommending it to his clients.
As a property investor-turned-buyer’s agent, Mr Handler still follows the same fundamental principles he used when he was purchasing assets for himself.
He said: “The fundamentals don't change. We're looking for good aspects, good natural light—always just looking for what's always going to sell and how we're going to get that a capital appreciation.”
Even if yields across Australia have gone south over the last four to five years, investors continue to buy properties for capital growth.
“We've got to think about the future when we're making those purchases,” Mr Handler added.
According to him, the 3 key elements for wealth-creation are:
1. Low strata fees
Mr Handler looks for assets that are low-maintenance in order to help his clients avoid being too high-risk.
“You need to make sure the building has low strata fees, [and is] low maintenance. If you're paying exceptionally high fees down the track it causes problems,” he explained.
2. Opportunities to add value
As a buyer’s agent, Mr Handler also sees to it that the properties he recommends to his clients have good opportunities they can capitalise on. A simple renovation, for example, like repainting or replacing the carpet, can dramatically increase the value of an asset, according to him.
He said: “I like to personally look for opportunities where you can capitalise, and add value. I'm talking low points to add value, not full renovations where you need to knock through walls.”
3. Good location
Most importantly, the property needs to be in an accessible location, Mr Handler said. Having good infrastructure surrounding the asset can ultimately lead to its increasing value over time.
The buyer’s agent highlighted: “It needs to be in a location where it's easily accessible for people to catch the train or any form of public transport or even just any form of shopping centre or something that's close by.”
Tune in to Ben Handler’s episode on The Smart Property Investment Show to know more about the fundamental principles of being a successful property investor as well as the key things to look out for when considering a property purchase.
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